46%%% would struggle to cover a $400 expense???? I find it hard to believe since I see most people driving brand new cars, eating out at least 2-3 times a week, going on vacations and carrying $800 smartphones, but I guess it is what it is!! An interesting article that breaks down county by county on how many Americans are struggling. This is the best research we've seen on how many Americans are really struggling financially, and it is heartbreaking Matt Turner 2h 4,720 http://www.businessinsider.com/just...ber-of-americans-arent-making-a-living-wage-1
The poorest people in the US own smart phones, computers, TV, video game consoles, cars and ebt cards. What could possibly go wrong?
Most people in my group at work make decent money, probably all individually pulling in a little more than the average US household income, and I'd say at least half would probably have an issue affording an unexpected $400 just based on comments I regularly hear. Most could probably afford quite a lot if they spent less on alcohol though...and most are twice my age LOL
That's not what you said in your title. There, you (rightly, I think) specified "an unexpected expense". Those aren't unexpected expenses, though, are they? Perhaps that's the difference?? I do take your point, though.
how else do you keep the hoi polloi under control. that way + a prison system that is worse than the gulag. "What could possibly go wrong?" nothing but bankruptcy both moral and financial.
That's really crazy. But I think it's true. The financial literacy is so low these days. A lot of people don't have saving at all, and it's sad.
Our economic and political systems are gear to consumption and not investment. If too many of us save and not borrow and spend, the economy would tank and the country would be in a deep recession with social unrests. Also, when the system has safety nets with welfare and medicaid , why do I need saving and why do I even have to work? Of course it is oversimplification but I sometimes wonder.
I don't. I had to loan my sister $600 today because her biweekly paycheck has been delayed by a few days, and she has no money in the bank to pay bills & buy groceries until then. However, she can afford several pair of Beats headphones, new iPhone with unlimited data plan, several pairs of Nike LeBron shoes for her kid, tattoos, 3 new TVs, etc...
As long as salary is so small that people have to make choices what to buy, they buy more than they can afford. So for most people this problem exists. Only when people have enough salary to save some money, the problem is solved. People always want more than they can afford, it is genetically. They always want bigger car or house than needed, they always cross their financial limits. Typical example is how Americans took higher loans when the value of their house theoretically went up a few years ago. When intrest rates started to raise again, and/or economy was in trouble, the US had the biggest number of forclosures by banks of houses that could not be paid off anymore. On the worst moment almost 4 million a year were under foreclosure. In Europe this is unthinkable of. The US lives on plastic money. 60% of all creditcards in the world are held by Americans although the US represents only 4.36% of the world population. On most cards there is a monthly pay off (average $609 a month) so they can even not pay back everything end of each month. In Europe people pay back end of each month the total debt.